Country throwing off remains
of 20th century socialism

Dear A.M. Costa Rica:
 
Commenting on Mr. Mark Mobley's comments regarding real estate taxes and insurance, and the seemingly nonsensical approach to these things in Costa Rica, we must not lose sight of what is happening with the country as part of the explanation. 
 
Costa Rica is finally wiggling its way out of the socialist bonds it wrapped itself in when the 2nd Republic came into being after the '48 revolution. All activities of national importance were nationalized: banks, insurance, telecommunications, electricity generation, fuel imports and distribution, ports, and even guaro production. The coffee, banana and beef businesses were the exceptions, for they were what gave Costa Rica the little wealth it had in those days, and to put those under government (mis)management was not a wise move. Even the mind of the well intentioned socialists was smart enough to recognize that: No wealth, no money to fund socialist programs.

The proposed tax on luxury homes emerges from the social conscious and political astuteness of certain Costa Rican leaders as a morally acceptable solution to provide some of the "less fortunate" Costa Ricans with decent housing. There is just not enough money in the government's kitty to make ends meet now, much less undertake a costly social housing program, so "let's tax the rich."

This is a formula that can work, has worked, but as Mr. Mobley correctly points out, they have to be careful or "squeezing too much" becomes counterproductive. I believe President Arias is wise enough to recognize that, so the tax may not be as onerous feared. Will there be confusion on how to make appraisals, and will the collection process be haphazard?

Of course it will, but that's the way inefficient governments operate. But something will be collected, and some housing will be built, and Costa Rica's social conscious will be eased — for awhile — and those with luxury homes won't really feel a pinch and will be glad they own such a nice home with such little taxes, not like Long Island, New York or London.

The national insurance company, INS, has no social conscious whatsoever, nor common sense from a user's point of view, and that is not surprising. As are all government monopolies, the INS became infected by personal interests.

Using the "cover of darkness" of a monopoly, it became the 'privilege pot' for top management all the way down to the lowest union worker. And to keep INS's pot full requires getting as much money as it can from the only source it has: we, the captive insurance buyers. So don't count on getting a lower rate because you are a safe driver.

Why should INS give you a lower rate? You aren't switching to another insurance company any time soon. Doesn't that make sense?

As I said, Costa Rica is wiggling its way out of the inefficiency of socialist bonds, and with the ratification of the CAFTA agreement — The odds given in Las Vegas says it will — you will have some choices where to get your cell phone, Internet and insurance needs satisfied.

If a Saudi Arabian prince says he is putting more into the country, maybe he sees something in the future we don't. After all he ain't no dummy. Most billionaires aren't. So maybe a little more patience is called for.